updated 06:55 pm EST, Wed January 10, 2007

Cisco Sues Apple

Cisco tonight said that it will sue Apple after an apparent failure to resolve a trademark dispute over the iPhone name, according to the BBC. The two electronics firms, which were initially thought to have been close to a settlement that would let both use the name for their voice handsets, did not reach an agreement originally expected by Tuesday evening. No explanation was provided for the alleged stall in negotiations, though Cisco implied in a statement that a breach of trust had taken place.

"Cisco entered into negotiations with Apple in good faith," said the company's general counsel and senior VP Mark Chandler.

UPDATE: Apple on Thursday morning disputed the claim, arguing that Cisco's claim is "tenuous at best," according to spokeswoman Natalie Kerris. "There are already several companies using the iPhone name for VoIP products," she said. The statement indicates a likely prolonged court battle between the two rivals.